The Word: Channel conflict

Smart banks know that they must avoid channel conflict, and banks should stop biting the hand that feeds them. It is bad for us and for our customers. I’ve had clients – who I’ve set up loans for – go into a branch and be told not to worry about going back to their broker, only for the bank to set up their loan all wrong. This is bad not only for my business due to the lost income, but also for the customer when they go to purchase their next property.

Brent Thrush, Get Ahead Finance

Two-way street

Channel conflict is a fact of life, and I think a lot of brokers forget that channel conflict is a two-way street. I have yet to meet a broker who would think twice about pinching a client from a bank. Channel conflict gives us the opportunity to outshine the banks at every stage of the client relationship. From application to well beyond settlement, through effective post-settlement communication and a proactive approach, we do what we can to ensure ongoing client satisfaction and client retention – regardless of lender action.

Andrew Walker, Gstreet Finance

Unwelcome distraction

Channel conflict questions your own support of a current lender and affects my decision process with recommending lenders to clients where I perceive that channel conflict is evident. As professionals in the industry, it’s a negative point that we should not have to be concerned about. It distracts our efforts to look after the client long term. Generally, channel conflict is the lender’s decision based on short-term financial benefits rather than the long-term plans and goals of the client.

Gerard Hansen, FinVu

Weakens client bond

Channel conflict makes me recognise the constant need to be in front of my client at any point they have a financial need. Lenders that use branches to do loan maintenance train the customer to contact them whenever they have a financial need. This weakens my client bond. I feel we will subconsciously tune out a lender that takes an opportunity to our disadvantage, even though brokers sometimes move clients from one lender to another. Regardless, we always need to give the client a reason to choose us.

Tony Schelling, Mortgage Choice

Not an issue

I don’t see channel conflict as an issue. Our business takes the conversation away from rate and looks more at strategy and structure for our clients. Rate or the waiver of an annual fee are usually the major conflicts we hear about, but they are not going to sway people who have their eye on the bigger picture. We also have the full support of our lender partners, so if a client has been offered a particular waiver or rate reduction, we are able to match it provided we have the required information from the client and the lender.

Justin Berger, Empower Wealth